When the stimulus package was first announced, the guidance left many Social Security recipients who don’t normally file taxes unsure of what to do in order to get the money.
The Treasury Department has now made it clear – Social Security recipients won’t have to take any action, according to CNN.
The Treasury Department said Wednesday that those beneficiaries will automatically receive the money. The IRS will use the information that the Social Security Administration has on file.
This move will ensure that one key group of citizens, the elderly and disabled who do not file income tax returns anymore, will automatically receive their part of the stimulus package. In a statement late on Wednesday, Treasury Secretary Steven Mnuchin said, “Social Security recipients who are not typically required to file a tax return need to take no action, and will receive their payment directly to their bank account.”
Buried in the CARES Act, the $2 trillion coronavirus stimulus bill enacted last week, was wording that said that while a person’s 2019 or 2018 federal tax return would be used to calculate their income, the IRS could use an SSA-1099 form for those who didn’t file taxes in either of those years.
Further confusing the issue was an answer to a question on the IRS website on Monday that said seniors and low-income individuals “will need to file a simple tax return to receive an economic impact payment” under the coronavirus package. It specifically mentioned Social Security recipients as being part of that category.
Allowing Social Security beneficiaries to receive their checks without filing a tax return is a good thing, critics argue. This year, more than 15 million Social Security recipients do not currently file tax returns and are not required to do so, according to the Center on Budget and Policy Priorities.
